Ovintiv Inc (OVV, Financial), an independent oil and gas producer, has seen a significant surge in its stock price over the past three months. The company's stock price has risen by 26.73%, from $37.71 to $47.77, boosting its market cap to $13.04 billion. Over the past week alone, the stock has gained 4.35%. This impressive performance is reflected in the company's GF Value, which currently stands at $51.96, down from $56.38 three months ago. According to GuruFocus.com's valuation, the stock is now "Fairly Valued", a significant improvement from being "Significantly Undervalued" three months ago.
Company Overview
Ovintiv Inc operates in the oil and gas industry, with key assets in the Permian, Eagle Ford, Montney, and Duvernay areas. The company reported net proven reserves of 1,348 million barrels of oil equivalent at the end of 2019. In 2020, net production averaged 543 thousand barrels of oil equivalent per day, with a ratio of 53% oil and natural gas liquids and 47% natural gas. 
Profitability Analysis
Ovintiv Inc's profitability is impressive, with a Profitability Rank of 7/10. This rank indicates a high level of profitability, which is better than 68.21% of companies in the industry. The company's Operating Margin of 31.74% is better than 77.09% of companies in the industry. Furthermore, the company's ROE of 44.86%, ROA of 21.17%, and ROIC of 24.20% are all significantly higher than the industry average. 
Growth Prospects
The company's Growth Rank of 5/10 indicates moderate growth. However, the company's 3-year and 5-year revenue growth rates per share of 23.30% and 11.50% respectively, are better than the majority of companies in the industry. The company's future revenue growth rate is expected to be 11.92% over the next 3 to 5 years, which is better than 79.54% of companies in the industry. Furthermore, the company's 3-year EPS growth rate of 150.10% is significantly higher than the industry average. 
Major Shareholders
The top three holders of Ovintiv Inc's stock are Dodge & Cox, HOTCHKIS & WILEY, and Smead Value Fund (Trades, Portfolio). Dodge & Cox holds the largest stake with 29,360,276 shares, representing 10.72% of the company. HOTCHKIS & WILEY holds 6,152,227 shares, representing 2.25% of the company, while Smead Value Fund (Trades, Portfolio) holds 4,777,374 shares, representing 1.73% of the company.
Competitive Landscape
Ovintiv Inc faces competition from APA Corp, Chesapeake Energy Corp, and Texas Pacific Land Corp, which have market caps of $12 billion, $11.79 billion, and $14.04 billion respectively. Despite the competition, Ovintiv Inc's impressive profitability and growth prospects position it well in the market.
Conclusion
In conclusion, Ovintiv Inc's stock performance, profitability, and growth prospects make it a compelling investment. The company's stock has seen a significant surge over the past three months, and its profitability and growth ranks are impressive. Furthermore, the company's position in the market relative to its competitors is strong. Based on the analyzed data, the potential future performance of the stock looks promising.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
